Agreement to Establish Digital Currency Investment Company Partnership

Rhea-AI Summary

MultiMetaVerse Holdings (MMV) announced a joint venture agreement to establish a digital currency investment company in Hong Kong. MMV will hold 80% ownership, while partners Zhao Mingwei ('Big Bear') and Li Yuanfeng will each hold 10%. The venture aims to invest in Bitcoin and Bitcoin mining machines, targeting investments of 500 Bitcoins by June 2025 and 1,000 Bitcoins by December 2025. MMV will issue 1 million shares to each partner, contingent on maintaining a stock price above $1.00 for specific periods or achieving minimum Bitcoin investment targets.

Positive

• Diversification into cryptocurrency market with 80% ownership in new joint venture
• Partnership with established blockchain experts and investors
• Clear investment targets of 500 Bitcoins by June 2025 and 1,000 Bitcoins by December 2025
• Stock issuance tied to performance metrics protecting shareholder value

Negative

• Risk of stock price falling below $1.00 threshold
• High volatility exposure through Bitcoin investments
• Significant shift from core animation business into speculative cryptocurrency market
• Potential shareholder dilution through new share issuance

Insights

Cryptocurrency Analyst

This strategic move into Bitcoin mining and investment represents a significant pivot for MMV, but carries substantial risks. The deal structure, requiring $1.00 stock price maintenance and Bitcoin investment milestones, indicates careful risk management. The commitment to acquire 500 Bitcoins by June 2025 and 1,000 by December 2025 is ambitious given current market conditions. The 80-20 ownership split gives MMV controlling interest while leveraging expertise from established crypto figures. However, the company's lack of prior cryptocurrency experience and the volatile nature of Bitcoin mining profitability raise concerns about execution risks. The stock price requirement suggests potential dilution risks for existing shareholders.

Corporate Strategy Analyst

This venture marks a dramatic strategic shift for an animation company into cryptocurrency, raising questions about core competency alignment. While the partnership brings in experienced crypto personalities, their track records are primarily in traditional investments and media. The conditional share issuance of 2 million total shares to partners includes reasonable performance metrics, but the $1.00 stock price target within 2 months appears challenging given MMV's market cap of only $14.2M. The lack of disclosed capital commitment from MMV and specific operational plans for mining operations creates uncertainty about the venture's execution potential.

SHANGHAI, Dec. 03, 2024 (GLOBE NEWSWIRE) -- MultiMetaVerse Holdings Limited (NASDAQ: MMV) (“MMV” or the “Company”), a leading animation and entertainment company for young consumers in China, announced that it has reached an agreement with Zhao Mingwei (“Big Bear”) and Li Yuanfeng to jointly establish a joint - venture in Hong Kong, leveraging their respective resources to Bitcoin and Bitcoin mining machines.

According to the agreement, MMV will hold 80% of the shares of the to-be-formed joint - venture company, Zhao Mingwei will hold 10% of the shares, and Li Yuanfeng will hold the remaining 10%. The board of directors will be composed of executives appointed by the three parties. The new company will purchase Bitcoin and purchase Bitcoin mining machines.

The joint venture company plans to achieve Party B and Party C to invest 500 Bitcoins legally owned by them by June 2025 and 1,000 bitcoins before December 2025 to make the joint venture company legally own the assets.

MMV will issue Party B and Party C 1 million shares each, subject to the condition that (i) the closing share price of MMV on Nasdaq exceeds US$1.00 within 2 months after the announcement of the signing of this agreement, and (ii) either (x) the closing price is not less than US$1.00 for more than 10 consecutive trading days on Nasdaq during those two months, or (y) the number of Bitcoin invested by the joint venture company is not less than 50. Otherwise, MMV will cancel the shares issued to Party B and Party C.

Zhao Mingwei (“Big Bear”), is a well - known financial blogger in China and an expert in digital currency. He is the founder of Xiongke Group and the author of “IP Wealth Creation Field”. He has over 10 million financial fans across his whole network in China. He has invested in projects such as Haowen International, Caitang (acquired by Proya), Guanyi Cloud Computing (acquired by Kingdee).

Li Yuanfeng, is a well - known angel investor in China, an expert in the application of blockchain technology, the former founder of Zhiyue Media (China) Holdings Co., Ltd., a former partner in Falcon Venture Capital, and a serial entrepreneur. He was named as the “Most Discovering Investor in China's Sharing Economy” by 36Kr. He was an early investor in projects such as Mipao, Delicious Life, Yuanding, Huifenqi, and Werewolf Kill, and an investor in the pre - IPO round of Inke. He has rich experience in the venture capital field.

Xu Yiran, Chairman and Chief Executive Officer of MMV, said, “We are pleased to join hands with two well - known blockchain and digital currency experts in China to work with us to develop our company's new business. The new company will focus on investing in Bitcoin globally.”

Zhao Mingwei (“Big Bear”) said, “Digital currency is one of the important investment targets in the global future and is worthy of in - depth research. Digital assets are a product of the pursuit of international market integration after the deepening of economic globalization, which initiates changes and challenges to the real economy level and the financial system in the industry. Of course, huge opportunities also coexist.”

Li Yuanfeng said, “I believe that once Bitcoin reaches $100,000, it will be more appealing to a mainstream audience. By entering the market before Bitcoin achieves the $100,000 threshold, I believe that we will be able to benefit from future price appreciation.”

About MultiMetaVerse Holdings Limited

MultiMetaVerse Holdings Limited (NASDAQ: MMV) is an animation and entertainment company dedicated to providing high - quality, immersive entertainment experiences through original, user - generated content and professional user - generated content. MMV started producing animations under its signature brand Aotu World in 2015. With its inspiring storylines and unique graphic styles, it is especially popular among young audiences in China. By leveraging its established user base, MMV has built a diversified product portfolio, including animated content, comics, short videos, collectibles, stationery, consumer products, and mobile games under the Aotu World brand. It has also developed and expanded new brands, stories, and characters, such as Neko Album.

Safe Harbor Statements

This press release contains forward-looking statements which generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Without limiting the generality of the foregoing, the forward-looking statements in this press release include descriptions of the Company’s future commercial operations. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, such as the Company’s inability to implement its business plans, identify and realize additional opportunities, or meet or exceed its financial projections and changes in the regulatory or competitive environment in which the Company operates. You should carefully consider the foregoing factors and the other risks and uncertainties described in the Company’s Annual Report on Form 20-F and other documents filed or to be filed by the Company with the SEC from time to time, which could cause actual events and results to differ materially from those contained in the forward-looking statements. All information provided herein is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For more information, please visit https://www.multi - metaverse.com/.
For investor and media inquiries, please contact:
MultiMetaVerse Holdings Limited
Investor Relations
Email: ir@multi - metaverse.com

FAQ

What is MMV's ownership percentage in the new Bitcoin joint venture?

MMV will hold 80% ownership in the Hong Kong-based joint venture company.

What are the Bitcoin investment targets for MMV's new joint venture?

The joint venture aims to invest 500 Bitcoins by June 2025 and 1,000 Bitcoins by December 2025.

What conditions must be met for MMV to issue shares to the joint venture partners?

MMV's stock must exceed $1.00 within 2 months of the announcement and maintain that price for 10 consecutive trading days, or the venture must invest at least 50 Bitcoins.

How many shares will MMV issue to each partner in the Bitcoin venture?

MMV will issue 1 million shares to each partner, Zhao Mingwei and Li Yuanfeng, subject to specific conditions.